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1. Define the commission source and commission base formula records for your commission plan. See Setting Up Commission and Royalty Management.
2. Create a Commission Plans record, as described in Creating Commission Plans.
3. Create the Commission Plan Items records, as described in Creating Commission Plan Item Records. A Commission Plan Items record consists of an individual product or an entire product category, the base formula used to calculate the commission base, and the commission period used to create a set of calculated commission bases. A Commission Plan Items record is needed for each product or product category included in a Commission Plan.
4. Create the Commission Rate Scales records, as described in Creating a Rate Scales Record,  Rate scales The Commission Rate Scales records define the commission tiers used to calculate a commission from the base formula.Create the Commission Agreements records, as described in Creating a Commission Agreement Record. Commission Agreement Tiers  Commission agreement tiers records reflect the lowest level at which commissions are calculated. Each tier record specifies the commission rate or amount to be applied to a commission base that is within the tiers range. 
5. Create the Commission Agreements records, as described in Creating a Commission Agreement Record. Commission agreements tie the sales representative and commission tiers to a commission plan. They are added to the Commission Plan to complete the construction of the organization's specific commission setup based on their products and commission incentive plan.